- Polygon, Solana, and Cardano are dismissing the SEC’s allegations that their tokens are unregistered securities.
- If these assets are classified as securities, it may have an effect on the manner in which we purchase and trade them.
- Due to these SEC allegations, many altcoins took a hit in the crypto market.
In a bold move, Polygon, Solana, and Cardano have banded together to challenge the Securities and Exchange Commission’s (SEC) allegations that some of the biggest altcoins on the market are unregistered securities. Among the tokens in question are ADA, MATIC, and SOL, which have all come under fire due to the SEC’s regulatory crackdown on Binance and Coinbase. This has resulted in Robinhood withdrawing support for Solana, Polygon, and other affected tokens.
Despite the mounting pressure, the Solana Foundation has refused to back down. It has made it clear that it is committed to working with regulators to establish clear guidelines for the industry. However, it vehemently disagrees with the SEC’s classification of SOL as a security. The foundation is determined to fight back against these allegations and prove that SOL has a legitimate place in the market.
Cardano Weighting In
In the world of cryptocurrency, regulatory risk is a constant threat. Recently, the Securities and Exchange Commission (SEC) has been cracking down on unregistered securities, causing panic in the market. Cardano’s ADA token was also one of the assets named in the SEC lawsuit, with some claiming it to be a security.
However, IOG, the company behind Cardano, denied these allegations, stating that they contained “numerous factual inaccuracies” and would have no impact on their operations. Despite this, the ADA price fell by 3% in the past 24 hours, as traders reacted to the regulatory risk.
Another asset that was affected by the SEC’s actions was MATIC. Just a few days before the lawsuit was filed, MATIC was trading at $0.9. However, as soon as the news broke, the price declined alongside the rest of the market, dropping to $0.8. The situation worsened on Friday when MATIC plummeted by almost 40% in a day, hitting a multi-month low at $0.5.
Polygon and Solana Joining the Fight
In response to the allegations, Polygon Labs, the organization behind the Polygon blockchain, also spoke out. They claimed that their blockchain was “developed outside the US, deployed outside the US, and focused to this day on the global community that supports the network.” However, despite their reassurances, the harmful price drops caused concern among investors. The world of cryptocurrency is a volatile one, and regulatory risk is just one of the many challenges that investors must navigate in order to succeed.
We are proud of the history of the Polygon network – developed outside the US, deployed outside the US, and focused to this day on the global community that supports the network. MATIC was a necessary part of the Polygon technology from Day 1, ensuring that the network would be…
— Polygon (Labs) (@0xPolygonLabs) June 10, 2023
Last week, SOL’s performance seemed to mirror that of MATIC, as both were accused of being unregistered securities. SOL started off strong at $22, but then fell to just under $20 during the week. To make matters worse, it plummeted by over 30% on Saturday.
The Solana Foundation, much like the team behind Cardano, has denied the SEC’s allegations. In a statement, the SF expressed its willingness to collaborate with regulators worldwide to establish clear legislative frameworks. However, the foundation disagreed with the characterization of SOL as a security.
The Solana Foundation disagrees with the characterization of SOL as a security. We welcome the continued engagement of policymakers as constructive partners on regulation to achieve legal clarity on these issues for the thousands of entrepreneurs across the U.S. building in the…
— Solana Foundation (@SolanaFndn) June 10, 2023
The recent allegations made by the SEC have sent ripples of concern among investors and traders alike. The classification of a token as a security can have far-reaching legal and financial implications, leaving many wondering what the future holds for the cryptocurrency industry. Yet, amidst this uncertainty, Polygon, Solana, and Cardano have stepped up to the plate, exuding confidence in their position and a willingness to fight back against the SEC’s claims.